FTX Sue Against SBF, Singh And Wang To Recover Company Shares

Cryptonews

FTX sued the company’s former management, SBF, Nishad Singh, and Gary Wang, for revoking its shares. This is the first official action taken by the new FTX CEO, John Ray, against previous management.

FTX (WRS and Alameda) sues Bankman-Fried, Singh and Wang to clawback the company’s own stock.

This is new FTX CEO John Ray 3.0’s first formal action against former management. pic.twitter.com/CVu7jsro9B

— FTX 2.0 Coalition (@AFTXcreditor) May 17, 2023

According to some court documents related to the lawsuit on May 17, FTX (especially WRS & Alameda) sued the former shareholders of Embed and asked for the recovery of $6.9 million.

The company also filed a similar recall for Embed founder Michael Giles, asking to recover $156 million and the remainder related to shares, options, and securities.

Previously, Embed was acquired in March 2022 for $220 million, of which $157 million went to founder Michael Giles, while FTX’s recent Embed auction ended with a final bid of just $1 million.

The bankruptcy attorneys of this cryptocurrency exchange said at the trial that they had recovered more than $7.3 billion in cash and liquid cryptocurrencies and liquid investment securities raised more than $800 million since January in an attempt to salvage the bankrupt company’s finances.

The exchange’s new CEO, John Ray, detailed inappropriate transfers at the crypto exchange and described it as a “complete failure” of the controls.

Looking to the future, FTX is in talks with stakeholders about options to restart its crypto exchange, and they could decide on that in Q2, Dietderich said. The restart of this exchange will have significant implications for customers who had crypto deposits at this bankrupt exchange but were locked out when the exchange announced bankruptcy.

FTX customers in Japan are the only ones able to withdraw any funds so far due to the country’s relatively tight crypto regulations.

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